Post-office tax savings schemes: Under Section 80C of Income Tax Act, one can get tax exemption from taxable income up to Rs 1.5 lakh in a financial year. You can claim exemption using these savings schemes.
Post-office tax savings schemes: Post office (India Post) not only provides a better platform to invest in small saving schemes, but also offers attractive tax returns along with attractive returns. If you want, you can also get tax rebate by investing money in some of its investment options. Under Section 80C of the Income Tax Act, one can get tax exemption from taxable income up to Rs 1.5 lakh in a financial year. You can claim exemption using these savings schemes. Interest rates on post office savings schemes run according to the interest rates on small savings schemes of the government, which are revised on a quarterly basis.
Fixed Deposit
In a post office fixed deposit (FD), one can invest lump sum money for a fixed period. In this, you can take advantage of fixed returns and interest payments. The Post Office Time Deposit (TD) or Fixed Deposit (FD) account offers interest rates for four maturity periods – one year, two years, three years and five years. According to the official website of India Post, one can get the benefit of tax exemption under Section 80C of the Income Tax Act, 1961 for investing under a fixed deposit of 5 years.
Public Provident Fund (PPF)
You can also get income tax benefits by investing in Post Office Public Provident Fund (PPF). Interest on the deposit is calculated on an annual basis, which means that it is added to the principal every year. PPF comes under the category of tax exemption, exemption, exemption (EEE). This means that returns, maturity amount and interest income are exempt from income tax.
Post Office Senior Citizen Savings Scheme (SCSS)
Post Office Senior Citizen Saving Scheme (SCSS) is very effective in making money for senior citizens to lead a successful life. The interest rate is payable on 31 March / 30 September / 31 December for the first time from the date of deposit and thereafter interest is payable on 31 March, 30 June, 30 September and 31 December.
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If the interest amount is more than Rs 10,000 per annum, then TDS is deducted at source. Investing under this scheme provides tax benefits under Section 80C of the Income Tax Act, 1961. Currently the interest rate in Post Office Senior Citizen Savings Scheme is 7.4 percent.
Post Office National Savings Letter (NSC)
This investment scheme run by India Post is quite popular. The annual interest rate is available on the investment in the Post Office National Saving Certificate (NSC). In this, the interest is calculated on an annual basis, but the amount of interest is given only after the investment matures. The amount deposited in the National Saving Certificate gets tax exemption under Section 80C of the Income Tax Act.
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